Rate rises aren't reaching many savers: how bonus-interest conditions work, and how to check you're not missing out

By The Rundowns News Desk · Published 1 November 2026

Rate rises hurt borrowers straight away. For savers, the benefit depends on the fine print. The big banks have passed this year's RBA hikes on to their maximum savings rates, but the base rate you fall back to when you miss a monthly condition has barely moved. With another rise widely expected on Melbourne Cup Day (Tuesday 3 November), now is a good time to check what your savings are actually earning.

What happened

An ABC News analysis published on Sunday 1 November found that, according to the big four banks' own annual reports, large sums of customers' money are sitting in accounts that pay no interest at all. The ABC reports about $122 billion at the Commonwealth Bank (as of June), nearly $82 billion at Westpac, about $67 billion at NAB and about $61 billion at ANZ (as of March) (ABC News). Much of that is likely to be everyday transaction-account money, which normally pays nothing.

Data Canstar compiled for the ABC shows CBA, NAB, ANZ and Westpac each lifted their maximum savings rates by 0.20 or 0.25 percentage points after the September rate rise. But the ABC reports that the increases went to only a few products, with strict conditions, and that base rates were kept flat at around 0.10%.

That's not new this year. After the February rise, Canstar found all four majors raised the bonus rate on their bonus saver accounts by up to 0.25 points but largely left base rates untouched. The Sydney Morning Herald reported the same pattern after the March rise, and The Guardian found savings increases were "under review" or applied selectively days after mortgage rates rose.

How bonus-interest accounts trip people up

A bonus saver pays a headline rate only if you meet every condition that month. Typical conditions include depositing a minimum amount, growing the balance, or making no (or only limited) withdrawals. Miss one and that month's interest drops to the base rate.

• The gap is large. In February, Canstar listed big-four bonus savers paying up to 4.40% to 5.25% if conditions were met, but base rates of between 0.01% and 0.25% if they weren't. Those rates have moved since, so check your own bank's current figures.
• Lots of people miss out. Canstar's research puts the share of bonus-saver customers who miss the bonus in a given month at around 41%. The ACCC's 2023 retail deposits inquiry found that, on average, 71% of bonus-interest accounts didn't earn bonus interest in any given month in the first half of 2023 (ACCC). The two figures measure different things over different periods, but both point the same way.
• Introductory rates end. Canstar found the majors passed February's rise in full to introductory rates for new customers. Those rates last only four to five months, and existing customers' ongoing rates rose by less, or not at all.
• Few people switch. The ABC cites the ACCC finding that only 16% of consumers had switched savings accounts in the previous three years, and 11% had switched transaction accounts.

What the banks say

In a statement to the ABC, Australian Banking Association chief executive Simon Birmingham said banks help customers get the most from their savings, including through app alerts and messages. He said the savings market is "highly competitive" and that banks paid more than $120 billion in interest to depositors last financial year. Canstar's Sally Tindall told the ABC banks could do more, such as sending a proactive text or email near the end of the month when a customer is about to miss the conditions. The ACCC recommended much the same in 2023.

Why it matters now

The RBA cash rate is 4.60% after four rises this year. The board announces its next decision at 2:30pm AEDT on Tuesday 3 November, and the ABC reports markets put the chance of a fifth rise at about 98%. Our RBA explainer covers what that would mean for mortgages. For savers, the question is whether any rise actually reaches the account their money is in.

A five-minute check for your savings

1. Find your real rate. Check last month's statement for the interest rate actually paid, not the headline rate in the ad.
2. Re-read the conditions. Note the minimum deposit, balance-growth and withdrawal rules, and set a reminder before month-end.
3. Check intro expiry dates. If you're on an introductory rate, find out when it ends and what it falls to.
4. Look at money sitting idle. Large balances in an everyday account usually earn nothing.
5. Compare. Unconditional savings accounts, term deposits and, if you have a mortgage, an offset account are all options. Western Sydney University's Michelle Cull told the ABC that an offset saves you the mortgage rate and that saving isn't taxed the way interest is, but that your own circumstances matter.

What's next

We'll update this page after Tuesday's RBA decision if the big banks announce changes to their savings rates.

General information only, not financial advice. Rates quoted are from the dated sources linked and may have changed.